Vertu Motors has seen buying and selling income enhance within the three-month interval to Might 31 this yr as a result of its £117m acquisition of Helston Garages on the finish of final yr.

The enterprise mentioned buying and selling income are above prior yr ranges, “regardless of continued inflationary-driven value headwinds”.

The 189 site-strong high 5 AM100 group is anticipating its full yr outcomes for 2023 to be consistent with expectations in an announcement to the market as a part of its annual normal assembly buying and selling replace.

Vertu acquired 28 franchised gross sales shops from Helston, with manufacturers together with BMW/Mini, Ferrari, Jaguar Land Rover, Peugeot and Volvo in a transfer that added vital scale and geographic protection of the South West to the group’s current footprint of shops.

Within the new retail and Motability channel, like-for-like volumes grew 10.8% with Vertu’s group efficiency evaluating favourably with the UK market that grew 8% over the identical interval.

Like-for-like new car margins have remained sturdy at 7.9% (8.0% final yr) regardless of the upper Motability combine which is at a decrease margin. 

Used automobile value stability anticipated to stay

The UK used car market stays resilient, whereas continued stability of used car costs is exhibited.

Vertu’s common used car promoting value per unit grew by 3.4% on a like-for-like foundation to over £21,000.

Like-for-like gross revenue per used unit bought was secure at £1,648 (£1,652 final yr).  Gross margin was 7.8% (8.1% final yr), reflecting continued larger promoting costs.

Fleet and industrial car like-for-like volumes noticed slight progress of 1.0%, with Vertu selecting to give attention to worthwhile fleet gross sales channels, slightly than the excessive progress, however low margin rental phase.

Providers revenues elevated by 4% on a like-for-like foundation for a similar interval in comparison with prior yr.

Whereas gross revenue will increase had been seen in all aftersales channels on a like-for-like foundation, gross margins for aftersales declines “as anticipated” as a result of larger technician wage prices.

Vertu mentioned technician capability stays “a continued constraint on income progress” in service with new coaching and recruitment initiatives being deliberate to assist handle this concern.

Robert Forrester, Vertu Motors chief government, mentioned: “I’m happy to report that buying and selling stays constructive.

“The whole, not too long ago enlarged, Vertu workforce has put in laborious work and dedication as soon as once more, and I wish to thank all of them.  Used automobile pricing has remained agency and we’ve got gained market share within the new automobile market.  The efficiency of our excessive margin aftersales enterprise has remained sturdy.

“The mixing of Helston Garages is progressing nicely and is on observe to ship the deliberate synergies.  We’re excited in regards to the alternatives our enlarged portfolio will create for Vertu Motors.”